The Associated Press October 19, 2011, 10:33PM ET

El Salvador high court rejects McDonald's appeal

El Salvador's Supreme Court has dismissed an appeal by McDonald's Corp. of a $23.9 million judgment levied against the world's largest burger chain in a contract dispute with a local business.

The court ruled McDonald's must pay the sum to Servipronto, which had the fast food chain's franchise rights in El Salvador until 1995.

McDonald's issued a statement Wednesday expressing disappointment with the decision, saying it required franchisees "to uphold our high standards."

The legal fight began in 1997, and in 2005 a judge imposed the sanction against the Oak Brook, Illinois-based McDonald's for breach of contract. Last year, McDonald's filed the appeal, which was dismissed by the high court Friday in a decision that was made public late Tuesday.

Servipronto's owner, Roberto Bukele, told The Associated Press that McDonald's assets in El Salvador would be seized until the U.S. company paid off the judgment.


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